Allstate Corp. is expected to start rolling out insurance for drivers working for app-based car services such as Uber and Lyft, beginning on a limited basis in just a few states this year.
While Uber and Lyft, specifically, provide insurance coverage for their drivers while those people are actually transporting passengers or on their way to pick someone up, the Associated Press explained that these workers must still carry personal auto insurance coverage. Illinois, Colorado, Texas, and Virginia will be the initial markets where the insurance will be offered, the AP said.
Allstate (NYSE: ALL) appears to be angling to sell policies that cost as much as $20 per year and would give added coverage to drivers while they’re in between passengers, Chicago Inno said. That added coverage could be useful to drivers whose insurance policies might not cover all situations, the post said.
Both reports said other states are expected to reach more states in 2016.
